To transmit a positive integer less than 1000, the Networked Number Node offers two options.

Option 1. Pay $\$$d to send each digit d. Therefore, 987 would cost $\$$9 + $\$$8 + $\$$7 = $\$$24 to transmit.

Option 2. Encode integer into binary (base 2) first, and then pay $\$$d to send each digit d. Therefore, 987 becomes 1111011011 and would cost $\$$1 + $\$$1 + $\$$1 + $\$$1 + $\$$0 + $\$$1 + $\$$1 + $\$$0 + $\$$1 + $\$$1 = $\$$8.

What is the largest integer less than 1000 that costs the same whether using Option 1 or Option 2?
Explanation: First, we need to find the largest possible value when sending a number with Option 2.  If we had 10 1s the smallest binary number would be: $$1111111111_2=1023$$ This is greater than 1000, so the greatest possible cost when sending with option 2 will be 9.  We can look at the largest numbers less than 1000 which cost 9 with Option 1 and see if they cost 9 with option 2.  The largest numbers are: $$900,810,801,720,711,702,...$$ The smallest possible number with 10 digits and cost 9 in Option 2 is: $$1011111111_2=767$$ Below this, we would have: $$111111111_2=511$$ which doesn't work.  We can quickly check the numbers above and see that they cost less than 9 with method 2.  So, we now need to consider numbers with cost of 8.  The largest numbers with a cost of 8 in Option 1 are: $$800,710,701,620,611,602,530,521,512,503,...$$ It is possible to check these in base 2 and see which is the first to cost 8 with Option 2, or we can go the other way and look at numbers with a cost of 8 in Option 2.  Either way, we will find the largest possible integer with a cost of 8 is: $$111110111_2 = 503$$ We must check and make sure that there are no numbers larger than $503$ with an Option 2 cost lower than 8. The numbers with cost 7 in Option 1 with value greater than $503$ are $700$, $610$, $601$, and $520$. We can check that all cost less than 7 in Option 2 and can be eliminated. The numbers with cost 6 in Option 1 with value greater than $503$ are $600$ and $510$, neither of which have cost 6 in Option 2 and therefore do not work. Since a number with cost 5 or lower must be less than 500, the largest possible integer is $\boxed{503}$.